14/01/2021 The JSE is set to open higher as Tencent trades up 4.36%, U.S and European Futures trade higher and Asian markets are mostly higher. Global focus is now still largely on the US, where a large stimulus package is expected from the incoming administration of president-elect Joe Biden. US Congress also moved to impeach outgoing US President Donald Trump on Wednesday, though this had little effect on markets. Locally, the JSE closed marginally lower despite the Platinum Index gaining 3 %. Northam led these gains, rising 4.08% to R217, Impala 4.01% to R213.79, Anglo American Platinum 4% to R1,532.90, Royal Bafokeng 3.89% to R75.84 and Sibany-Stillwater 1.07% to R63.16. APN was the biggest gainer, up 4.63%, the Banking Index was down 1.65%. IG Top 40 is trading up 244 points.
On the coronavirus vaccine front, trial data published Wednesday in the New England Journal of Medicine showed Johnson & Johnson’s one-shot Covid vaccine is safe and appears to generate a immune response in both young and elderly volunteers. Aspen could start production for J & J as early as March.
WHAT TO WATCH:
• African Union Secures About 300 Million Covid-19 Vaccines.
• Gold Treads Water as Traders Weigh Mixed Messages on Stimulus.
• South African Stocks Resume Climb as Miners trade Higher.
• Yield Premium Spurs Best Inflows in a Month.Rhodium Prices Surge to $20,000/Oz to Extend Advance on Demand.
• Anglo to Start Hydrogen Pilot Project in Chile in Coming Months.
• Truworths Raised to Buy at SBG Securities; PT 41 rand.
• Richemont PT Raised to 95 Swiss francs at RBC.
• Bid Corp Cut to Hold at HSBC; PT 280 rand
1pm: Nov. Electricity Production YoY, prior -2.8%
1pm: Nov. Electricity Consumption YoY, prior -2.5%
The pan-European Stoxx 600 ended up 0.17% provisionally, with telecoms stocks climbing 1.1% to lead gains while travel and leisure shed 1.1%. FTSE – 0.13%, CAC + 0.21%, DAX + 0.11%.
In the U.S overnight, the S&P 500 and Nasdaq Composite gained 0.2% and 0.4%, respectively. The Dow, meanwhile, closed flat. Gains for the S&P 500 and Nasdaq came after Intel rallied nearly 7% to lead tech stocks higher. They also followed U.S. interest rates easing from their highest levels since March 2020. The Fed Vice Chairman said the central bank won’t raise rates until inflation reaches 2%.
Asian markets this morning are mixed after Chinese trade data for December. China’s exports rose 18.1% in December as compared with a year earlier, according to customs data released Thursday. That was higher than expectations for a 15% increase by analysts in a Reuters poll. Meanwhile, China’s imports grew 6.5% year-on-year in December, as compared with expectations for a 5% rise in a Reuters poll. Meanwhile the Nikkei is up 0.80%, the Hang Seng + 0.75% with 700HK + 4.36%, the ASX 200 is up 0.43%. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed.
Gold prices fell overnight as U.S. Treasury yields and the dollar rebounded, while investors awaited details on incoming U.S. President Joe Biden’s coronavirus stimulus proposal. Gold’s trading at $ 1843, Silver rose 0.1% to $25.16 an ounce. Platinum climbed 0.4% to $1,098.34, while palladium eased 0.3% to $2,378.37.
Oil prices eased for a second day as mounting Coronavirus cases globally raised demand concerns, although a drawdown in U.S. crude stocks for a fifth straight week and robust data from China capped losses. Brent – 0.34% $ 55.87, WTI – 0.15% $ 52.83.